Banks start increasing savings interest rates

Thursday, Apr 11, 2024 14:37

A bank teller counts money at a transaction office in Hà Nội. Some banks have increased their savings interest rates since April. — Photo

Rather than lowering interest rates continuously as before, some banks have started to slightly increase savings interest rates this month amidst signs of a slowdown in deposits.

Six banks, including VPBank, Sài Gòn-Hà Nội Bank (SHB), Eximbank, Hồ Chí Minh Development Bank (HDB), Vietnam Maritime Bank (MSB) and Kienlongbank, have increased their deposit interest rates since April.

VPBank has made the highest adjustment, listing a rate rise of 0.1-0.5 percentage points in all terms. The bank’s rate for 12-month savings has increased from 4.2 per cent to 4.7 per cent per year when customers deposit over the counter, and from 4.3 per cent to 4.8 per cent when customers deposit online.

Some other banks, such as MSB, SHB, Eximbank and HDBank, have commonly adjusted rates up 0.2 percentage points for certain terms.

Currently, the highest interest rate for deposits under VNĐ1 billion (US$40,000) in the banking system is 5.8 per cent per year and applicable for a 24-month term. As for terms under 12 months, the highest interest rate is 5.3 per cent per year.

The interest rate hike at some banks has begun as deposits in the banking system have shown signs of slowdown.

According to data from the General Statistics Office, by March 25 this year, capital raised by banks decreased by 0.76 per cent compared to the end of 2023, while it increased by nearly 1.2 per cent at the same time last year. However, banks' liquidity is still very abundant.

Meanwhile, after declining in the first two months of this year, loans provided by banks by March 28 increased by 0.9 per cent compared to early 2023 to about VNĐ13.6 quadrillion ($544 billion), the State Bank of Vietnam (SBV) reported.

Industry insiders forecast savings interest rates will remain at the current low level at least until the middle of this year but may increase slightly when credit demand rises.

However, they noted, it is unlikely savings interest rates would return to the same high level as in 2022. — VNS

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